The short answer: Small gyms sell for about 0.72× revenue or 2.44× SDE, an $800K-revenue gym with $160K SDE prices in the $390K, $576K range depending on method. With an SBA 7(a) loan you put down roughly 10% (~$39K on the low end) plus closing costs and working capital. The line item first-time buyers miss: leased equipment and, for franchises, transfer approval fees, neither shows up in the headline purchase price.
Purchase price by gym size
Gym pricing converges around two anchors: ~2.44× SDE and ~0.72× revenue (the BizBuySell median). Because gym owner margins run lower and wider than a professional-services business, the two methods can diverge more than they would for, say, an accounting firm, always triangulate both.
| Revenue | SDE (~20%) | Price @ 2.44× SDE | Price @ 0.72× rev |
|---|---|---|---|
| $400,000 | $80,000 | $195,200 | $288,000 |
| $800,000 | $160,000 | $390,400 | $576,000 |
| $1,500,000 | $300,000 | $732,000 | $1,080,000 |
BizBuySell's benchmark data puts the gym revenue multiple at 0.50×, 1.00× (0.72× median), while independent valuation shops report SDE multiples clustering 2.48×, 2.93×. When the two methods disagree sharply, it's usually a margin signal, a low-margin, equipment-heavy gym will price lower on SDE than on revenue, while a lean, high-margin boutique studio can price higher on SDE. Check current comps on the gym multiples page.
What moves the multiple
| Pushes multiple up | Pushes multiple down |
|---|---|
| Low member churn, long average tenure | High churn, heavy reliance on new sign-ups just to stay flat |
| Equipment mostly owned, well-maintained | Equipment mostly leased or overdue for replacement |
| Diversified revenue: PT, classes, retail | Revenue almost entirely base access dues |
| Staff-run day-to-day, low owner dependence | Owner personally teaches/coaches most sessions |
| Clean EFT collections, delinquency under 5% | High decline/delinquency rate on member drafts |
Down payment & the full cost stack
The sticker price isn't the cash you need. On an SBA 7(a) acquisition, budget for:
- Equity injection, ~10% of project cost. Part can sometimes be a seller note on full standby that counts toward your injection.
- Equipment lease buyout or assumption. If cardio and strength equipment is leased rather than owned, you'll either assume the remaining payments or negotiate a buyout at close, get the full lease schedule before you sign a letter of intent.
- Franchise transfer fee and franchisor approval (if applicable). Franchise brands require the franchisor to approve you as the buyer, and resales typically carry a transfer fee separate from the purchase price.
- SBA + closing fees, guaranty fee, packaging, and closing costs.
- Diligence, legal review and a quality-of-earnings check to confirm SDE, active-member counts, and EFT collection quality.
- Working capital, payroll and software/billing-platform fees through the first few billing cycles before member churn and new sign-ups stabilize.
Leased equipment doesn't show up in the price, but it shows up in your cash flow
A gym that looks cheap on a revenue multiple can carry $2,000, $5,000+ a month in equipment lease payments that transfer with the business. Add lease payments to your debt-service math before you compare deals on price alone.
A worked deal
You buy a gym with $800,000 revenue and $160,000 SDE at 2.44×, a $390,000 price.
| Line | Amount |
|---|---|
| Purchase price (2.44× $160K SDE) | $390,000 |
| Equity injection (~10%) | $39,000 |
| SBA 7(a) loan (~90%) | $351,000 |
| Est. annual debt service (10 yr, ~11%) | −$58,000 |
| SDE available | $160,000 |
| Cash flow after debt (pre-owner-wage) | $102,000 |
| DSCR (SDE ÷ debt service) | ~2.8× |
Even after the loan payment, the gym throws off ~$102K before you draw a formal salary, and the DSCR clears lender minimums with room to spare. This deal assumes owned equipment with no meaningful lease burden, if the facility carries leased cardio or strength equipment, add those payments before you finalize your offer. Model your own version in the valuation calculator, then read how SBA financing works.
The purchase price gets you the keys. The equipment lease and the churn rate decide whether you keep them.
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Frequently asked questions
Most small gyms sell for about 0.72× revenue or 2.44× SDE. An $800K-revenue gym with $160K SDE typically prices near $390K, $576K depending on method. With an SBA loan you'd put down ~10% (~$39K on the low end) plus closing costs and working capital.
SBA 7(a) generally requires ~10% equity. On a $390K gym that's ~$39K, and part can sometimes be covered by a standby seller note that counts toward your injection.
Around 2.44× SDE is the anchor, with independent studios ranging 2.48×, 2.93×. Pay top-of-range only for strong retention, owned equipment, and low owner dependence. Pay less for a churn-heavy, leased-equipment, owner-dependent gym.
Yes, equipment lease buyouts or assumed payments, franchise transfer fees and franchisor approval, deferred equipment replacement, SBA guaranty/packaging fees, quality-of-earnings diligence, and working capital through the first billing cycles.
Sources
- Gym revenue & earnings multiples, BizBuySell Valuation Benchmarks; Peak Business Valuation.
- Equipment lease vs. own considerations, PushPress; Biz2Credit.
- SBA 7(a) equity injection, DSCR & franchise transfer requirements, sba.gov 7(a) program; Crestmont Capital SBA health club guide; Pursuit Lending.
